Red Cat (NASDAQ:RCAT) Sees Large Volume Increase – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw strong trading volume on Thursday . 20,887,825 shares traded hands during trading, an increase of 45% from the previous session’s volume of 14,435,181 shares.The stock last traded at $13.0970 and had previously closed at $10.67.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. UBS Group assumed coverage on Red Cat in a research note on Wednesday. They set a “buy” rating for the company. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. HC Wainwright assumed coverage on Red Cat in a research note on Wednesday. They set a “buy” rating and a $20.00 target price for the company. Finally, LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $20.50.

Red Cat Trading Up 31.5%

The stock has a market capitalization of $1.72 billion, a PE ratio of -19.82 and a beta of 1.21. The firm has a 50 day moving average of $12.05 and a two-hundred day moving average of $11.36.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. The firm’s quarterly revenue was up 849.1% on a year-over-year basis. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.65 EPS for the current year.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of RCAT. Brevan Howard Capital Management LP acquired a new position in Red Cat in the 3rd quarter valued at about $19,739,000. Tudor Investment Corp ET AL raised its stake in Red Cat by 214.0% in the 3rd quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock valued at $13,222,000 after purchasing an additional 870,612 shares during the last quarter. Kornitzer Capital Management Inc. KS acquired a new position in Red Cat in the 3rd quarter valued at about $880,000. Baader Bank Aktiengesellschaft acquired a new position in Red Cat in the 3rd quarter valued at about $491,000. Finally, Vanguard Group Inc. raised its stake in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after purchasing an additional 493,660 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

Red Cat Company Profile

Red Cat Holdings, Inc (NASDAQ: RCAT) is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.